CDG Tech Forum – PTTSan Diego, CA

June 30, 2004

“Instant Voice Services:An Overview of Commercial Networks

and Operators”

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Kodiak OverviewInstant Voice ServicesCommercial ExperienceCritical Implementation AspectsSummary

Agenda

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Kodiak at a GlanceKodiak at a Glance

Company Background:n Founded in 2001n CEO is former CTO of Vodafone /

AirTouch / PacTeln Experienced Management Teamn Funded by Kleiner Perkins Caufield

& Byers and Redpoint Ventures

140+ Employees Worldwide4 Locations: n San Ramon, CA USA

(Headquarters)n Plano, Texas USA (Research)n Bangalore, India (Development)n Swindon, UK (EMEA Support)

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Our Business

Instant Voice ServicesSingle-site, Multi-site and Multi-national ConfigurationsIntegrated 2G, 2.5G and 3G

All Digital Networks (GSM, CDMA, IMT-2000)Multiple Operating SystemsOpen Handset Policy

EngineeringInstallationTraining Technical Support

AdvancedWirelessSystems

Handset Software Products

ProfessionalServices

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11 Commercial Networks over Cellular 11 Commercial Networks over Cellular

GSM6/04OrangeJordan

CDMA6/04CellcomUnited States

GSM6/04OrangeEgypt

GSM5/04OrangeSwitzerland

GSM5/04OrangeBelgium

GSM4/04OrangeThe Netherlands

GSM3/04OrangeGuadeloupe

3/04

1/04

1/04

1/04

Launch

GSM

GSM

GSM

CDMA

System

Orange

Orange

Orange

Carrier

Dominican Republic

France

United Kingdom

United States

Country

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Kodiak OverviewInstant Voice ServicesCommercial ExperienceCritical Implementation AspectsSummary

Agenda

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A New Category of Voice Services

Kodiak’s Instant Voice Services improves the end user experience while adding new sources of incremental revenue and profit for

carriers worldwide

NEXTEL, Verizon,Sprint

Push to Talk

Cellular

Messaging

Packet Data

Cellular

Messaging

Packet Data

Cellular

Messaging

Packet Data

Cellular / PCS

Instant Voice

Services

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Kodiak Instant Voice Services

Fast 1:1 and 1: Many CallingCall Waiting

Global Roaming

InstantCalling

(Press-to-Talk) Instant Upgrade to Cellular Call

Fast 1: Many Two-Way Conference Call

Call Waiting

Global Roaming

InstantConferencing

International & Inter-Carrier Groups

The Kodiak System Adds Revenue-Producing Voice Services on Top of Existing GSM and CDMA Services:

Groups & IndividualsSee Who is Available on Your Phone

Instantly Updated

Instant Availability

Baseline

PREMIUM

VALUE

Fast 1:1 and 1: Many Voice MessagesASAP or Scheduled Delivery

Interoperates with Email, Vmail, MMS, IMS

Instant Voice Messaging

GSM / CDMA Services Foundation

En

d U

ser

Exp

erie

nce

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Kodiak OverviewInstant Voice ServicesCommercial ExperienceCritical Implementation AspectsSummary

Agenda

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Commercial Networks over Cellular Commercial Networks over Cellular

8/03Verizon WirelessUnited States

11/03Sprint PCSUnited States

6/04OrangeJordan

6/04OrangeEgypt

5/04OrangeSwitzerland

5/04OrangeBelgium

4/04OrangeThe Netherlands

3/04OrangeGuadeloupe

3/04

1/04

1/04

1/04

Launch Supplier

Orange

Orange

Orange

Carrier

Dominican Republic

France

United Kingdom

United States

Country

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Commercial IVS Experiences

ALLTEL – Touch2Talk™n Instant Calling (Push-to-Talk)n Instant Availability

Orange – TalkNow™n Instant Calling (Push-to-Talk)n Instant Availabilityn Instant Conferencing

Definition of Implementation Terms:n “PoC-D” = Push-to-Talk over Cellular Datan “PoC-V” = Push-to-Talk over Cellular Voice

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ALLTEL “Touch2Talk” Service

ALLTEL T2T – a fantastic success:n >50,000 Handsets Sold in 2 Months:

triple ALLTEL expectationsn Average Sale: 4 Handsets @ $250

with 2 year contract or renewaln $20 add-on package preferred by

95% of customersn 30% increase in usage/T2T phone

ALLTEL Statistics:n 8M wireless subscribersn #7 operator in US n Total Revenue $8Bn Wireless Revenue $5Bn Operates in 26 of 50 Statesn Nationwide Roaming Coverage

ALLTEL Statistics:n 8M wireless subscribersn #7 operator in US n Total Revenue $8Bn Wireless Revenue $5Bn Operates in 26 of 50 Statesn Nationwide Roaming Coverage

Touch2Talk US Coverage

“ALLTEL’s Touch2Talk: Fast, Usable and Clear Push-to-Connect Addition”“With the speed, clarity and usability of Touch2Talk, ALLTEL poses a potential threat to Nextel’s Direct Connect users, particularly small and medium regional business…”

Adam Guy, March 2, 2004The Yankee Group

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IVS Spans All User Segments

Corporaten White collar workgroups

n Customer sales/support teamsn Product development teams

n Blue collar workgroupsn Field servicen Maintenance

n Dispatchn Medical

Governmentn Public service agenciesn Emergency services

Consumern Familiesn Friendsn Sports/Clubs

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Kodiak OverviewInstant Voice ServicesCommercial NetworksCritical Implementation AspectsSummary

Agenda

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Implementation Experience Highlights 7 Critical Aspects to Wireless Customers:HandsetsBillingConsistent Performance (QoS)DelayLaw Enforcement Assistance (CALEA, Priority Calling)Voice QualityCoverage

7 Critical Implementation Aspects

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#1 Handsets – Key Learnings:nCustomers require familiar handset brands

and multiple modelsnHandset software can be embedded in purpose-

built handsets or as an application on Operating Systems, i.e. Palm OS and Microsoft OS.nSome PTT suppliers limit handset brands; others

are open to all handset brands.

nCustomers expect integrated Contacts and prefer instant availability nIntegrated Contacts promotes ease-of-use.nSome PTT suppliers offer presence; some do not.

Instant availability sets industry benchmark.

7 Critical Implementation Aspects

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#2 Billing – Key Learning(s):nPrepaid and Postpaid Billing is

mandatory for commercial launch –a “showstopper”nPer Call / Per Leg Billing is strongly

preferred by Carriersn PoC-D systems require purchase of new

real-time packet billing systems or funding IT software projects; PoC-V systems use existing MSC billing systems.

7 Critical Implementation Aspects

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#3 Consistent Performance –Key Learning(s):

nCustomers expect PoC to work the same way every time they push the Talk buttonnPoC-D system performance varies widely

depending upon a number of factors –customers lack confidence in the system.nPoC-V systems have QoS, work the same way

every time, building customer confidence.

7 Critical Implementation Aspects

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#3 Consistent Performance –Key Learning(s):

nCustomers expect PoC to have the same coverage, voice quality and call success rates (blocked & dropped) as their cellular phone, plus faster call set-up.nPoC-D systems generally have less coverage

than cellular, lower voice quality and lower call success rates.nPoC-V delivers the coverage, voice quality, and

call success rates customers experience with cellular voice.

7 Critical Implementation Aspects

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#4 Delay – Key Learning(s):nDelay interferes with the human conversation

process and can frustrate and dissatisfy.n Intra-call latency impacts the customer far

more than call set-up delay. (8 Times More)

nCustomers will pay a premium for faster service (less delay) and expect a discount for slower service (more delay). nPoC-D systems generally have multi-second

call set-up delay and multi-second intra-call latency due to variable QoS.nPoC-V delivers consistent call set-up and tenth

of a second intra-call latency with QoS.

7 Critical Implementation Aspects

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#5 Law Enforcement – Key Learning(s):nCALEA compliance is required by the US

Government to support law enforcement.nPoC-D systems appear to require system-

wide mods and upgrades; PoC-V systems leverage existing MSC CALEA capabilities.

nPriority Calling enables priority access for law enforcement and public safety.nPoC-D systems will require system-wide

mods and upgrades to enable Priority Calling; PoC-V systems work with existing MSC Priority Call capability.

7 Critical Implementation Aspects

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#6 Voice Quality – Key Learning(s):nCustomers expect voice quality as good

or better than their cellularnPoC-D voice quality is noticeably less than

cellular voice; many customers feel cellular voice quality is not good enough.nPoC-V voice has the same voice quality as

customers experience on cellular. With Tandem Free Operation (TFO), PoC-V voice quality is higher than cellular voice.

7 Critical Implementation Aspects

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#7 Coverage – Key Learning(s):nCustomers expect coverage as good or better

than their cellular coverage todaynIn most current carrier implementations,

1X Data coverage is less than 1X voice coverage, resulting in smaller PoC-D coverage area.nAMPS cell sites also exist in many parts of the

world which cannot support PoC-D.nPoC-V systems deliver the same coverage is

the CDMA Voice network and continue to work on related AMPS networks.

7 Critical Implementation Aspects

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SummarySummary

Instant Voice Services introduce the next generation in voice services, beyond PTT:n Instant Availabilityn Instant Callingn Instant Conferencingn Instant Voice Messaging

Commercial experience in 11 countries shows increased Usage, Voice Revenue & Margin.

Learnings from Implementation: “Focus on the Fundamentals” – Consistency, Reliability, Coverage, Voice Quality, Handsets, Billing and Global Roaming.

Thank You!